Dollar Tree Stock Falls. ‘Elevated Shrink’ Leads to Profit Guidance Cut.

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Dollar Tree

stock was falling Thursday after first-quarter earnings missed estimates and the discount retailer slashed its fiscal-year profit outlook.

Dollar Tree

(ticker: DLTR) posted first-quarter adjusted earnings of $1.47 a share, lower than analysts’ estimates of $1.53.

Sales for the quarter were $7.32 billion, rising 6.1% from a year ago, and higher than Wall Street’s call for $7.28 billion.

“While we are maintaining our full-year 2023 sales outlook, we are adjusting our EPS outlook as we expect the elevated shrink and unfavorable sales mix to persist through the balance of the year,” said CEO Rick Dreiling in a press release. “We still expect earnings to be more back-end loaded this year as the benefits of lower ocean freight rates flow through.”

For the fiscal year, sales are expected at between $30 billion and $30.5 billion, nearly aligning with previous guidance of $29.9 billion to $30.5 billion. Earnings were forecast at between $5.73 and $6.13 a share, down from a prior range of $6.30 to $6.80.

Shares of Dollar Tree lost 11% to $138 in premarket trading Thursday.

Write to Emily Dattilo at emily.dattilo@dowjones.com